Saturday, 17 February, 2018

Govt slashes GST rate on 29 goods and 53 categories of services

Finance minister Arun Jaitley Finance minister Arun Jaitley
Nellie Chapman | 19 January, 2018, 04:58

The Finance Minister, who chaired the 25th meeting of the GST Council in New Delhi, said the Council has recommended many relief measures regarding GST rates ongoods and services covering many sectors and commodities. Finance Minister Arun Jaitley said these rates will be effective from January 2. The new rates will come into effect on January 25.

Finance minister Arun Jaitley said after daylong discussions at the GST Council that until now, the new tax system had operated entirely on a voluntary compliance basis.

GST has been reduced from 18 to 12 per cent on construction of Metro and monorail projects, while on tailoring services it has been brought down from 18 per cent to five per cent. Admission to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet will now be taxed at 18 per cent instead of 28 per cent and on common effluent treatment plans services from 18 per cent to 12 per cent. So far, 14 states have signed up for implementing the e-way bill, which is being executed by the National Informatics Centre, said Modi after reviewing the progress of the programme with the government-run IT body. And given the onerous GST return filing procedure, the council is working on simplifying the process. Nandan Nilekani wants matching at the level of buyer and seller, Drabu said.

The FM said said the Council may consider putting some new items under GST brackets. The Council may take up this issue for consideration.

29 handicraft products have also been brought to 0% rate which were earlier charged at 18%.

The Group of Ministers (GoM) to look into the implementation of information technology for the Network (GSTN) has raised concerns over the increase in shortfall in average revenue for states under the GST regime.

A report yesterday highlighted that the biodiesel industry is demanding a decrease in GST rate from 18% to 5%.

These items have been put on zero per cent tax slab. The move, however, cost the exchequer dearly as following months GST collections declined. The adjustments are the latest in a series of tweaks the government has made to the GST. The data show that the GST collection for November stood at Rs 80,808 crore, lowest since the GST roll out in last July. He said that another video conference council meet will take 10 days from now on simplification of GST filing and e-way bill. After the introduction of single form filing, the traders/firms will have to file just 12, one each month. "The process behind these proposals was that GSTR-3B return filing should continue for now and the suppliers should upload their invoices ... if there's any discrepancy, at a later stage, they can be asked to explain and this would be a deterrent in the first instance", Jaitley told reporters after the meeting.